Value-Add, Transit-Oriented Properties for Sale near Denver

Tuesday, July 18, 2017

Update:  HFF announced the sale of this property on January 9, 2018. For a current listing of available commercial real estate properties, please click here to be redirected to our Search Properties page.

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Olde Town Plaza, a 19,673-square-foot, mixed-use retail and residential building, and the adjacent 5790 Yukon Street, a 0.42-acre redevelopment site located in the northwest Denver suburb of Arvada, Colorado. This value-add, transit-oriented opportunity is located at the entrance to historic Olde Town Arvada, which is experiencing a renaissance by attracting urban retail and restaurant concepts and residents seeking a neighborhood near both downtown Denver and the Rocky Mountains.

Located at 5773-5777 Olde Wadsworth Boulevard, Olde Town Plaza’s retail and residential components present significant upside with proven executable plans for a new investor to implement. Retail rents currently sit at 33 percent below market, and leasing interest at the property has attracted tenants to sign LOIs at market rates. Current ownership has renovated three of the 17 apartment units obtaining an in-place rent premiums of $269 per month. Renovations included resurfaced countertops, new cabinetry, vinyl plank flooring, new appliances and updated light fixtures. With one additional renovation underway, a new investor has the opportunity to finish 13 additional unit renovations with a demonstrated road map to capture higher rents and enhanced yields.

5790 Yukon Street provides the opportunity to redevelop an infill location to its highest and best use, enhancing the attractiveness and performance of both assets. Zoning permits for up to three-stories of residential, retail and office uses on the site allowing a new investor to engineer a program to maximize yields. The city of Arvada has embraced nearby development and encourages the continued revitalization of the downtown neighborhood. Situated 10 minutes from downtown, on the next light rail line to begin operation in late 2017, Olde Town Arvada is attracting affluent consumers and residents. Investors can offer on one or both of the assets and capitalize on this opportunity.

Value-Add Commercial Properties for Sale Investment Highlights

  • Proven Value-Add Opportunity:  With a weighted average in-place retail rental rate that is 33 percent below market and 6,020 square feet of retail tenant expirations in the first two years, a new investor has an opportunity to capture significant upside marking tenants to market. There are 14 units at Olde Town Plaza that have yet to be renovated. Completing additional unit renovations can generate an aggregate $259/ month premium in rental rates. 5790 Yukon Street presents a rare urban-infill land development opportunity in a booming Colorado Historic District experiencing rapid growth and high demand.
  • Outstanding Accessibility to Amenities, Transit and Major Employment Hubs:  Strategically located just two short blocks from RTD’s newest line (opening late 2017), the Gold Line (G-Line) at Olde Town Station, the transit-oriented properties for sale are both a 15-minute light rail or car ride to Downtown Denver’s 32 million square feet of office space. The property is situated along Wadsworth Boulevard, a major commuter and retail corridor that sees more than 55,000 vehicles per day, and is one mile from Interstate 70, a major east-west highway that sees more than 157,000 vehicles per day. Nearby employers include more than 10 million square feet of retail along the Wadsworth Boulevard retail corridor and three million square feet of office within a three-mile radius of the property. Additionally, access to Denver’s top amenities, including Coors Field, Mile High Stadium, Pepsi Center, Downtown Aquarium, Harold Lutz Sports Complex and 11 world class Rocky Mountain ski resorts via Interstate 70, are a short car ride or light rail ride from the properties for sale. Additionally, Olde Town Plaza will provide 600 parking spaces.
  • Strong Retail Trade Area and Market Fundamentals:  Olde Town Arvada, the roughly 15-block area in which Olde Town Plaza and 5790 Yukon Street are located, continues to demonstrate excellent retail fundamentals. The direct retail vacancy within Olde Town Arvada is 1.7 percent as of Q2 2017, a 470 bps decrease from 2013, and virtually no new deliveries in the Olde Town Arvada district limits – coupled with a robust demand for retail space – have driven rents up to a market average of $26.18 per square foot (triple net lease), a 66.5 percent increase from 2013. The robust growth and demand of Olde Town Arvada has led to a retail resurgence, bringing some of Denver’s favorite local urban concepts into this historic district and creating a true destination retail experience.
  • Coveted Walkability in an Urban “Downtown” Location:  The address currently has a Walk Score® of 73, proving Olde Town Plaza and 5790 Yukon Street are very walkable locations with access to a multitude of amenities. Olde Town Arvada is one of metro Denver’s most exciting destinations for dining, unique bars, breweries, wineries, galleries and boutique shopping, providing a true downtown feel. Olde Town Arvada features more than 100 dining, shopping and entertainment options in the 15-block area, where residents, visitors and commuters pack the area with high daytime traffic volume.

Olde Town Plaza and 5790 Yukon Street offers an attractive opportunity to own a transit-oriented property with both a value-add and development potential in an infill Denver location. For more information on this commercial property for sale or other mixed-use properties for sale in the Denver area, please contact Chad Murray or Mark Williford in HFF’s Denver office. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

By Topics